Japan has lodged a protest against China’s newly imposed export restrictions on dichlorosilane (DCS), a crucial chemical in semiconductor production. This move by China involves requiring importers to pay cash deposits of up to 99.2% for DCS imported from Japan, impacting prominent Japanese companies such as Shin-Etsu Chemical and Denal Silane. Japan is currently assessing how these measures could affect its domestic businesses.
China has justified the restrictions as provisional, citing an anti-dumping investigation that allegedly found Japanese DCS exports to be detrimental to its local industry. The Chinese authorities have indicated that a definitive decision will be made following the conclusion of the investigation. In response, the Japanese government has called on China to ensure that these measures do not unjustly harm Japanese industry and has indicated readiness to take necessary actions if the situation demands.
This development takes place against a backdrop of strained relations between China and Japan, partly due to geopolitical tensions surrounding Taiwan. It is not the only instance of trade friction, as China has also enacted other trade and export controls affecting Japanese entities and products that might have military applications.
DCS plays a vital role in the semiconductor manufacturing process, where it is used to create ultra-thin silicon layers on computer chips. Given Japan’s leading position as a global supplier of ultrapure DCS, the new Chinese restrictions hold substantial implications for the semiconductor supply chain worldwide.